Ref Soyaoil yesterday traded with the negative node and settled -2.17% down at 701.55 in spot demand amid weakness in soyabean prices. The country’s dependence on imports of vegetable oils is likely to continue as its productivity has remained unchanged over a period of time. India's 2012/13 edible oil imports could rise 4.2 percent to a record high, with palm oil cornering the bulk of that as the world's second most populous country fails to raise output quickly enough to meet demand from a growing middle class. Total oilseed area this kharif season is expected to decline five per cent due to scanty rainfall in crop growing areas. This year, the total oilseed acreage is expected to be around 15.98 million hectares, compared to 16.79 million hectares last year. The area under soybean is higher by 400,000 hectares and the total area is expected to be around 10.7 million hectares, compared to 10.3 million hectares last year. At the Indore spot market soyoil edged down -3.45 rupees to 746.1 rupees 10 kg. In yesterday's trading session Ref Soyaoil has touched the low of 699.5 after opening at 712.5, and finally settled at 701.55. For today's session market is looking to take support at 696.5, a break below could see a test of 691.5 and where as resistance is now likely to be seen at 709.5, a move above could see prices testing 717.5.

Trading Ideas:

Ref soyaoil trading range for the day is 691.52-717.52.

Ref soyaoil ended with tracking weakness in spot demand amid weakness in soyabean prices

Total oilseed area this kharif season is expected to decline five per cent due to scanty rainfall in crop growing areas

The country’s dependence on imports of vegetable oils is likely to continue

At the Indore spot market soyoil edged down by -3.45 rupee to 746.1 rupees 10 kgs.